Ferroglobe Reports Results for Fourth Quarter and Calendar Year 2017

• Q4 2017 results:

Revenue of$468.2 million, up 3.7% from$451.6 millionin Q3 2017

Net profit of$32.1 million, or$0.19on a fully diluted per share basis, up from a net loss of$(5.0) million, or a$(0.02)per share, in the prior quarter. The Q4 results include a tax benefit from recent US tax reform of$30.9 million

Adjusted net profit of$11.0 million, or$0.06on a fully diluted per share basis, compared to a net profit of$9.2 million, or$0.05on a fully diluted per share basis, in the prior quarter. The US tax reforms did not impact these figures

Net profit of$20.0 million, or$0.15on a fully diluted per share basis, up from a net loss of$(358.6) million, or a$(1.97)per share, in 2016. The 2017 results include the tax benefit from US tax reform of$30.9 million

Adjusted net profit of$21.5 million, or$0.13on a fully diluted per share basis, compared to a net loss of$(39.3) million, or$(0.23)on a fully diluted per share basis, in 2016. The US tax reforms did not impact these figures

LONDON,Feb. 26, 2018(GLOBE NEWSWIRE) --Ferroglobe PLC(NASDAQ:GSM), the world's leading producer of silicon metal, and a leading silicon and manganese-based specialty alloys producer, today announced results for the fourth quarter and Calendar Year of 2017.

Q4 Summary:

In Q4 2017,Ferroglobeposted a net profit of$32.1 million, or$0.19per share on a fully diluted basis, which includes a benefit resulting from US tax reform of$30.9 million. On an adjusted basis, Q4 2017 net profit was$11.0 million, or$0.06per share on a fully diluted basis. US tax reform did not impact adjusted net profit.

Net sales in Q4 2017 totaled$468.2 million, up 3.7% from$451.6 millionin Q3 2017. Selling prices for Ferroglobe's key products continued to improve over the course of the quarter across both theU.S.andEurope:

The average selling price for silicon metal increased by 4.7% to$2,440/MT in Q4 2017, as compared to$2,330/MT in Q3 2017

The average selling price for silicon-based alloys increased by 5.8% to$1,741/MT in Q4 2017, as compared to$1,645/MT in Q3 2017; and

The average selling price for manganese-based alloys decreased by 0.2% to$1,346/MT in Q4 2017, as compared to$1,349/MT in Q3 2017

For the Calendar Year 2017,Ferroglobeposted a net profit of$20.0 million, or$0.15per share on a fully diluted basis, which includes a benefit resulting from US tax reforms of$30.9 million. On an adjusted basis, the Calendar Year 2017 net profit was$21.5 million, or$0.13per share on a fully diluted basis - a result not impacted by the US tax reforms.

For the Calendar Year 2017 reported EBITDA was$170.9 million, up from($247.4) millionin the prior year. On an adjusted basis, 2017 EBITDA was$185.8 million, up 163.9% from 2016 adjusted EBITDA of$70.4 million. The company reported adjusted EBITDA margins of 10.7% for the Calendar Year 2017, compared to adjusted EBITDA margins of 4.5% for 2016.

Net sales for the Calendar Year 2017 totaled$1.7 billion, up 10.5% from$1.6 billionin 2016. Selling prices for Ferroglobe's key products continued to improve over the course of the year across both theU.S.andEurope:

The average selling price for silicon metal increased by 3.1% to$2,270/MT in 2017, as compared to$2,201/MT in 2016

The average selling price for silicon-based alloys increased by 14.9% to$1,608/MT in 2017, as compared to$1,400/MT in 2016; and

The average selling price for manganese-based alloys increased by 60.7% to$1,327/MT in 2017, as compared to$826/MT in 2016

Quarter EndedDecember 31, 2017

Quarter EndedSeptember 30, 2017

Quarter EndedDecember 31, 2016

Year EndedDecember 31, 2017

Year EndedDecember 31, 2016

Shipments in metric tons:

Silicon Metal

83,785

83,465

82,372

325,884

341,388

Silicon-based Alloys

70,399

66,873

78,698

283,021

297,669

Manganese-based Alloys

72,374

73,642

76,445

274,119

270,430

Total shipments*

226,558

223,980

237,515

883,024

909,487

Quarter EndedDecember 31, 2017

Quarter EndedSeptember 30, 2017

Quarter EndedDecember 31, 2016

Year EndedDecember 31, 2017

Year EndedDecember 31, 2016

Average selling price ($/MT):

Silicon Metal

$2,440

$2,330

$2,080

$2,270

$2,201

Silicon-based Alloys

$1,741

$1,645

$1,340

$1,608

$1,400

Manganese-based Alloys

$1,346

$1,349

$890

$1,327

$826

Total*

$1,873

$1,803

$1,452

$1,765

$1,530

Quarter EndedDecember 31, 2017

Quarter EndedSeptember 30, 2017

Quarter EndedDecember 31, 2016

Year EndedDecember 31, 2017

Year EndedDecember 31, 2016

Average selling price ($/lb.):

Silicon Metal

$1.11

$1.06

$0.94

$1.03

$1.00

Silicon-based Alloys

$0.79

$0.75

$0.61

$0.73

$0.64

Manganese-based Alloys

$0.61

$0.61

$0.40

$0.60

$0.37

Total*

$0.85

$0.82

$0.66

$0.80

$0.69

* Excludes by-products and other

"2017 has been an exceptional turnaround year forFerroglobe, and we are thrilled that the business has performed according to our expectations through Q4. Our swift actions, with continued focus on cost reduction, flexible capacity deployment and financial discipline, have returned the company to profitability, and brought net leverage close to our target level of 2.0x," saidPedro Larrea, CEO of Ferroglobe. "Robust fundamentals for the global demand of advanced materials, strong performance in our end markets and pricing momentum, as well as our timely capacity restarts, will contribute to stronger results throughout 2018. Acceleration in cash flow generation this year will further strengthen our company, and is reinforcing our focus on value creation for our stakeholders."

Strong cash flow generation continues to support liquidity

Working capital decreased by$80.4 millionduring the year, primarily a result of the accounts receivable securitization.Ferroglobecontinued to generate positive cash flows. During the fourth quarter, the company generated operating cash flows of$61.3 million, and free cash flow of$24.0 million, resulting in total free cash flow of$82.0 millionfor Calendar Year 2017.

Long lived asset charge due to reclassification of discontinued operations to continuing operations

-

-

-

2,608

-

Accrual of contingent liabilities

6,044

-

-

12,444

-

Impairment loss

-

-

199,834

-

267,449

Transaction and due diligence expenses

-

-

-

-

7,979

Business interruption

-

(1,980

)

-

(1,980

)

2,532

Inventory impairment

-

-

1,080

-

5,410

Executive severance

-

-

24,430

-

24,430

Step-up valuation adjustment

-

3,757

-

3,757

-

Globe purchase price allocation adjustments

-

-

-

-

10,022

Adjusted EBITDA

$

54,912

56,110

6,588

185,775

70,419

Adjusted net profit (loss) attributable toFerroglobe:

Quarter EndedDecember 31, 2017

Quarter EndedSeptember 30, 2017

Quarter EndedDecember 31, 2016

Year EndedDecember 31, 2017

Year EndedDecember 31, 2016

Profit (loss) attributable to the parent

$

32,210

(3,347

)

(241,967

)

25,168

(338,427

)

Tax rate adjustment

(25,322

)

11,363

73,195

(13,833

)

83,004

Non-controlling interest settlement

-

-

-

1,191

-

Power credit

-

-

-

(2,513

)

-

Long lived asset charge due to reclassification of discontinued operations to continuing operations

-

-

-

1,773

-

Accrual of contingent liabilities

4,110

-

-

8,462

-

Impairment loss

-

-

135,887

-

181,865

Transaction and due diligence expenses

-

-

-

-

5,426

Business interruption

-

(1,346

)

-

(1,346

)

1,722

Inventory impairment

-

-

735

-

3,679

Executive severance

-

-

16,612

-

16,612

Step-up valuation adjustment

-

2,555

-

2,555

-

Globe purchase price allocation adjustments

-

-

-

-

6,815

Adjusted profit (loss) attributable to the parent

$

10,998

9,225

(15,538

)

21,457

(39,304

)

Adjusted diluted profit (loss) per share:

Quarter EndedDecember 31, 2017

Quarter EndedSeptember 30, 2017

Quarter EndedDecember 31, 2016

Year EndedDecember 31, 2017

Year EndedDecember 31, 2016

Diluted profit (loss) per ordinary share

$

0.19

(0.02

)

(1.41

)

0.15

(1.97

)

Tax rate adjustment

(0.15

)

0.07

0.43

(0.08

)

0.48

Non-controlling interest settlement

-

-

-

0.01

-

Power credit

-

-

-

(0.01

)

-

Long lived asset charge due to reclassification of discontinued operations to continuing operations

-

-

-

0.01

-

Accrual of contingent liabilities

0.02

-

-

0.05

-

Impairment loss

-

-

0.79

-

1.06

Transaction and due diligence expenses

-

-

-

-

0.03

Business interruption

-

(0.01

)

-

(0.01

)

0.01

Inventory impairment

-

-

-

-

0.02

Executive severance

-

-

0.10

-

0.10

Step-up valuation adjustment

-

0.01

-

0.01

-

Globe purchase price allocation adjustments

-

-

-

-

0.04

Adjusted diluted profit (loss) per ordinary share

$

0.06

0.05

(0.09

)

0.13

(0.23

)

Conference Call

Ferroglobewill review the results for the fourth quarter and Calendar Year of 2017 during a conference call at9:00 a.m. Eastern TimeonTuesday, February 27, 2018.

The dial-in number for the call for participants inthe United Statesis 877-293-5491 (conference ID 5384356). International callers should dial +1 914-495-8526 (conference ID 5384356). Please dial in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast available athttps://edge.media-server.com/m6/p/ekx96f53

AboutFerroglobe

Ferroglobe PLCis one of the world's leading suppliers of silicon metal, silicon-based specialty alloys, and ferroalloys serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. The company is based inLondon. For more information, visithttp://investor.ferroglobe.com.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning ofU.S.securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company's future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as "anticipate", "believe", "could", "estimate", "expect", "forecast", "guidance", "intends", "likely", "may", "plan", "potential", "predicts", "seek", "will" and words of similar meaning or the negative thereof.

Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result,Ferroglobe'sactual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control.

Forward-looking financial information and other metrics presented herein represent the Company's goals and are not intended as guidance or projections for the periods presented herein or any future periods.

All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.

Ferroglobehas included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important because they eliminate items that have less bearing on the Company's current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.